How to Buy a Home with Bad Credit?

If you're looking to buy a home and have bad credit, there are still options available to you. While not all lenders have the same credit score requirements, there are loan programs that can be tailored to fit your needs.

First, what is considered "bad" credit? According to Experian, anything less than a 670 FICO credit score is considered a subprime score. 580 to 669 is considered fair, and anything less than that is considered poor.

Conventional loans typically require a credit score of 620 or higher, but there are programs available for borrowers with lower credit scores. The Federal Housing Administration (FHA) offers loans with credit scores as low as 580, and the Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) offer programs for borrowers with even lower credit scores.

Remember, down payment, overall debt, and income are all factors that lenders consider when approving a loan...and no two buyers are the same. So even if your credit score isn't perfect, there may still be a loan program that's right for you.

While buying a home with bad credit can lead to higher rates and monthly payments, don't forget that you can work on improving your credit and refinance your loan to more favorable terms. Talk to a lender today to learn more about your options.

I have recommendations for great lenders in Utah that specialize in credit repair. Send Angie Clarke with UT Makes Moves a message today, to start on your road to homeownership.

Find Your Utah Home with Angie Clarke and UT Makes Moves / Keller Williams Realty

If you are looking for the right Utah home, then give Angie Clarke with UT Makes Moves a call. I aim to offer an exceptional relocation experience and unparalleled customer service through prompt communication, ethics and integrity, and the utmost care / concern for my clients!

Angie Clarke with UT Makes Moves is your local Salt Lake City home expert, specializing in working with buyers who are relocating to Utah. Whether you are buying or selling, I'd love the opportunity to make your relocation journey smooth and successful...I strive to provide Relocation Elevated: easing minds, building community, and finding home.

To get started on finding the ideal Utah home for you, take a look at my buyer's or seller's guides, or schedule a time to meet with me today. You can also contact me at angelaclarke@kw.com or call (904) 226-3894. I'd love to be your Salt Lake City Realtor.